When the CFPB and Department of Justice withdrew a joint statement on the consideration of immigration status under the Equal Credit Opportunity Act in January 2026, we pointed out that “the agencies could have, but did not, [seek] to reduce compliance burdens by providing helpful guidance on how creditors may appropriately consider an applicant’s immigration status under ECOA.… Continue Reading
John L. Culhane, Jr.
Advocacy Groups and Private Companies File Lawsuit Against Revised ECOA Rule
As expected, advocacy groups and private companies have filed a lawsuit challenging the CFPB’s recent final rule (Final Rule) revising Regulation B, which implements the Equal Credit Opportunity Act (ECOA). The lawsuit was filed in the federal district court for the District of Columbia by the National Fair Housing Alliance, Rise Economy (fka California Reinvestment Coalition), BLDS, LLC and SolasAI.… Continue Reading
Trump nominates John Crews to serve on NCUA board
Posted in NCUA, Trump Administration
President Donald Trump has nominated John Crews to serve on the NCUA board. If confirmed, Crews would replace Kyle Hauptman as the sole board member of the agency.
Hauptman’s term expired in August 2025, but he has stayed on the board as permitted by section 102(c) of the Federal Credit Union Act, which allows any board member to continue to serve after the expiration of their term until a successor has qualified.… Continue Reading
CFPB Finalizes Revised 1071 Rule
On May 1, 2026, the CPFB published in the Federal Register the revised Small Business Data Collection Rule, or “1071 Rule” (the “2026 Final Rule”), which it had proposed revising in November 2025. The 2026 Final Rule becomes effective June 30, 2026, although as discussed below, the compliance date is January 1, 2028.… Continue Reading
OCC Finalizes Rules Confirming Preemption of State Mortgage Interest-on-Escrow Laws
On Friday, May 15, 2026, the Office of the Comptroller of the Currency (OCC) issued two final rules on national banks’ and federal savings associations’ real estate lending powers related to mortgage escrow accounts. The actions codify a rule reflecting longstanding OCC precedent on mortgage escrow account powers and finalize the proposed preemption rule regarding interest-on-escrow laws, both of which the Second Circuit relied upon in its recent decision in Cantero v.… Continue Reading
NYDFS says disparate impact remains in effect
Countering an Executive Order issued by President Trump and the adoption by the CFPB of its final rule revising Regulation B, the New York Department of Financial Services recently issued an Industry Letter warning the financial institutions that it regulates that they must consider disparate impact when lending.
“Regulated Entities are reminded that under Section 296-a, covered credit decisions that result in a disparate impact may constitute an unlawful discriminatory practice,” the agency wrote in a letter to financial institutions.… Continue Reading
California Governor Newsom taps former CFPB Director Rohit Chopra to lead regulatory super agency
California Governor Gavin Newsom has appointed former CFPB Director Rohit Chopra to be the inaugural Secretary of a new cabinet-level agency that he created last year — the Business and Consumer Services Agency (“BCSA”). Although the appointment must be confirmed by the California Senate, the move is already generating significant attention within the financial services industry because it may signal California’s intent to assume a substantially larger role in consumer financial regulation and enforcement at a time when many expect reduced federal regulatory activity.… Continue Reading
Seventh Circuit Hits Reset Button in Illinois Interchange Fee Litigation After OCC “Doubles Down” on Federal Preemption under the National Bank Act
The U.S. Court of Appeals for the Seventh Circuit issued a highly significant order on May 8, 2026 in the closely watched litigation challenging the Illinois Interchange Fee Prohibition Act (“IFPA”), vacating the district court’s judgment and remanding the case for further proceedings in light of the OCC’s recently issued Interim Final Rule and preemption order.… Continue Reading
CFPB’s OIG investigating current workforce and contracting developments plus interpretations adopted and enforcement actions taken under then Director Chopra
The CFPB’s Office of Inspector General is still investigating the agency’s workforce and contracting moves to see what impact it has had on agency actions.
“We are reviewing the CFPB’s workforce and contracting actions to determine their high-level effects on mission-related activities and support functions,” the OIG said, in an update of its activities.… Continue Reading
FDIC rescinds guidance governing re-presentment of same transaction
The FDIC has issued FIL-14-2026 rescinding its guidance governing the re-presentment of the same transaction after raising questions about the Biden Administration’s prior guidance.
“Based on a review and assessment of the guidance in FIL-32-2023, the FDIC concludes that the guidance is overly broad in scope and has raised uncertainty regarding when, for instance, disclosures regarding re-presentments may result in ‘unfairness’ concerns under Section 5 of the Federal Trade Commission Act,” the FDIC said in announcing the rescission.… Continue Reading